Introduction

Theoretical and Hypothesis Development

Methodology

Empirical Results

Discussion

References

Abstract

The decision on whether and to what extent they should implement cross-channel integration is a crucial and complex task for multi-channel retailers. Although prior studies have sought to identify key determinants of this decision, most are descriptive or draw on divergent theoretical perspectives. The authors provide a cohesive theoretical model from the perspective of innovation diffusion, including not only technology-related but also organizational and environmental factors. The empirical findings based on the observations in the U.S. retail sector indicate that retailers’ information-technology capabilities and private-label provision drive their cross-channel integration. Moderate diversity facilitates cross-channel integration more than does high or low diversity. Firms’ financial resources seem to be less important or unimportant at a low level of industry concentration, but may influence retailers’ cross-channel integration at a high level of industry concentration.

Introduction

The rapid pace of technological development, coupled with the continual emergence of new channels (such as kiosks, websites, mobile-phone apps, and social media), empowers consumers with more information and choices than ever before. Consumers use these channels as means of engaging with retailers across multiple touch-points (Aberdeen 2013). There is a real need for retailers to move from a multi-channel to an omni-channel retailing model (Brynjolfsson, Hu, and Rahman 2013; Rigby 2011; Verhoef, Kannan, and Inman 2015). Crosschannel integration, as a retailer’s chosen way to implement the omni-channel strategy through combining multiple channels (Cao and Li 2015; Neslin et al. 2006), is attracting increasing attention in literature (Herhausen et al. 2015; Verhoef 2012; Zhang et al. 2010). Cao and Li (2015) define cross-channel integration as the degree to which a firm coordinates the objectives, design, and deployment of its channels in creating synergies for the firm and offering benefits to its consumers. The degree of coordination can range from complete separation of channels to their full coordination (Cao and Li 2015; Neslin et al. 2006). Each degree of coordination comprises different levels of benefits, outcomes, costs, and risks for retailers and consumers, and each requires the commitment of different levels of resources. Therefore, the determinants of crosschannel integration are an important topic for retailers to consider in deciding whether, if at all, and to what extent they should integrate their channels (Dholakia et al. 2010; Zhang et al. 2010).